aegis logistics
TRANSCRIPT
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Aegis Logistics (AEGCHE)
Niche player expands scope
Aegis Logistics, a leader in oil and gas logistics, is expanding its liquid
storage capacities to ride the soaring demand for oil and petroleum
products. It already has a strong presence in Mumbai, and is now
expanding to other ports to capitalise on the expansion in the usage of
oil/gas products. The company has also forayed into the auto liquefied
petroleum gas (LPG) business through its Autogas stations.
Increasing demand for oil & chemical logistics to boost growthIndia is currently the fifth biggest energy consumer in the world and is
expected to become the third largest consumer by 2030. Given the soaring
demand for petroleum and petroleum-based products, we believe there will
be a massive demand for logistics services like port operations, tankage,
transportation and pipeline logistics.
Capacity expansion of high-margin liquid storage facilityAegis is a major player in liquid logistics with a strong presence in Mumbai.
It intends to increase its liquid storage capacities to 344,000 kl (kilo-litres) by
the end of FY10, and also expand its reach to other port locations like Kochi,
Haldia (Kolkata) JNPT and Mangalore. To achieve this, it has adopted a mix
of organic as well as inorganic route.
Foray into high-growth auto LPG retail businessThe company has set up a retail network of 24 gas stations through which it
sells automotive LPG under the Aegis Autogas brand name. It plans to
aggressively increase its retail presence to 150 gas stations by the end FY10.
We believe demand for LPG will increase and the auto gas retailing business
will be one of the major growth drivers for Aegis.
ValuationsAt the current price of Rs 275, the stock is trading at 15.03x its FY08E EPS of
Rs 18.30 and 9.23x its FY09E EPS of Rs 29.81. On an EV/EBIDTA basis, the
stock is available at 9.92x FY08E earnings and 6.60x FY09E earnings. We
believe that the company is likely to benefit from the growth in Indias
energy consumption. We rate the stock an OUTPERFORMER and set a price
target of Rs 417, 14x FY09E earnings.
Exhibit 1: Key Financials
Year to March 31 FY06 FY07 FY08E FY09E FY10E
Revenue (Rs cr) 154.50 240.38 356.20 518.61 713.87
Net Profit (Rs cr) 30.20 21.55 36.49 59.44 87.76
EPS (Rs) 18.52 13.22 18.30 29.81 44.01
% Growth 172.4% -28.6% 38.5% 62.9% 47.6%
P/E (x) 14.04 20.81 15.03 9.23 6.25
Price/Book (x) 43.84 21.76 25.88 33.03 38.41
EV/EBIDTA (x) 12.16 16.47 9.92 6.60 4.52
NPM (%) 19.55 8.96 10.25 11.46 12.29
RoNW (%) 30.29 18.48 24.87 30.29 32.03
RoCE (%) 29.42 16.45 23.00 28.97 33.31Source: ICICIdirect Research
Initiating coverage
ICICIdirect | Equity Research
January 30, 2008| Logistics
Sales & EPS trend
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Rscr
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Net Sales EPS (RHS)
Stock metricsPromoters holding 63.7%
Market Cap Rs 448 crore
52 Week H/L 404 / 111
Sensex 17,222
Average volume 43,954
Comparative return metrics
Stock return 3 M 6M 12M
Aegis 62% 81% 62%
TCI -4% 3% 47%
Gateway Distriparks -23% -27% -33%
Price trend
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SharePrice(Rs)
OUTPERFORMER
Current priceRs 275
Target priceRs 417
Potential upside52%
Time Frame12 months
Analysts Names
Siddhartha [email protected]
Ember [email protected]
Target Price
Absolute Buy
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Company Background
Aegis Logistics was founded in 1956 and started operations as a
specialty chemicals manufacturer supplying to the paintsindustry. In 1977, the company diversified into liquid logisticsmanagement when it set up a port terminal in Mumbai tohandle ships carrying cargo of chemicals. The company furtherdiversified into port handling and storage of oil & petroleumproducts, as well as distribution and storage facilities for gasessuch as LPG and propane.
Post liberalisation, the company set its sight on the growinglogistics business and divested its chemical manufacturing facilities to concentrate on providing total supply chainmanagement solutions for moving oil, gas and chemicals.
An ISO 9001-2000, ISO 14001-1996 & OHSAS 18001 certifiedcompany, Aegis has graduated from being a chemicalsmanufacturer to a leading liquid logistics solutions provider inIndia.
With rising oil prices, the company identified the underlyingpotential in the LPG retailing business and is now increasinglyshifting its focus towards the gas division, which accounted for79.7% of its revenues in FY07. In order to grow its LPGbusiness, the company entered the Auto gas retailing businessin FY06.
Share holding pattern
Share holder % holding
Promoters 63.71
Institutional investors 4.50Other investors 5.76
General public 26.03
Promoter & Institutional holding trend
63.7 63.7 63.7 63.7
1.6 2.2 2.2 4.5
0
10
20
30
40
50
60
70
Q4FY07 Q1FY08 Q2FY08 Q3FY08
(%
Promoters Institutional investors
Aegis Logistics
Exhibit 2: Revenue Model Standalone (FY07)
Total Revenues: Rs 240.38 crore
Liquid Division20.3%
Gas Division79.7%
PBIT margins5.2%
Net profit margins
9.0%Source: Company, ICICIdirect Research
Storage & Trading Auto gasTank storage andterminaling
PBIT margins54.6%
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INVESTMENT RATIONALE
Liquid DivisionAegis provides logistics to importers and exporters of liquid oil, chemicals and
petroleum products. It operates a terminal at Trombay which is connected tothree jetties at Mumbai Port. Mumbai port is strategically located on the
western coast and is in the heartland of India's chemical and petrochemical
belt. The terminal has ISO 9001-2000 Quality Management System (QMS) and
ISO 14001-1996 Environmental Management System (EMS) certification.
Major player in MumbaiAegis is in the business of storing, handling and distributing oil products,
chemicals and gas. It has a strong foothold in Mumbai, where it owns facilities
to provide such services. The companys forte is handling liquid products.
The company offers integrated supply chain services to exporters and
importers of petroleum, petrochemical and specialty chemical products.Service offerings include sourcing, shipping, custom clearance, storage and
distribution (through road or pipeline movement) of products.
It has a modern liquid terminal connected to three jetties at Mumbai port with
total storage capacity of 162,000 kl (kilo-litres). The company has significant
advantage due to its proximity with the country's two major refineries,
Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum
Corporation (BPCL). Aegis forms a critical part of the supply chain of HPCL and
BPCL, which are connected with dedicated pipelines to provide quality logistic
support with minimal losses.
Increasing demand for oil & chemical logistics to boost growthIndia is currently the fifth biggest energy consumer in the world and is one of
the world's fastest growing energy consumers. It is projected to become the
third largest consumer by 2030. Demand for petroleum products has increased
at a CAGR of 3% from 100.1 million tonnes in FY01 to 119.5 million tonnes in
FY07. India imports about 73% of its oil requirement, and its dependence on
oil imports would increase in the future.
Exhibit 3: Consumption and gross import of petroleum products in India (million tonnes)
90
95
100
105
110
115
120
125
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
0
2
4
6
8
10
12
14
16
18
Consumption Gross Imports (RHS)
Source: Ministry of Petroleum & Natural Gas, ICICIdirect Research
Aegis is one of the major players in Mumbai with a total storage capacity of 162,000 kl(FY07)
India is likely to become thethird largest energy consumer
in the world by 2030
Offers integrated supply chain services to importers andexporters of liquid oil, chemicals
and petroleum products
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Given the soaring demand for petroleum and petroleum-based products, we
believe there will be a substantial increase in demand for allied services like
shipping, port operations, tankage, road transportation and pipeline logistics.
Capacity expansion of high-margin liquid storage facilityAegis is planning to leverage its expertise in handling liquid products to
become a niche player in professional third party logistics services (3PL) for
handling oil and chemicals. The company intends to expand its business in
other port locations like Kochi, Haldia (Calcutta), Mumbai, and Mangalore over
the next few years.
The liquid division contributed only 20.3% to total revenues in FY07. However,
in terms of operating margins (PBIT margins: 54%), it contributed 72.7% to the
overall PBIT. The company enjoys high margins due to its proximity to the
Mumbai port, large storage facilities which are well connected throughpipelines right from the ports to the storage tanks and further to the clients
refineries.
Aegis intends to aggressively increase its liquid storage capacities to 344,000
kl by the end of FY10. To achieve this, it has adopted a mix of organic as well
as inorganic route.
It acquired Sealord Containers, owned by the Adani Group with a capacity of
75,000 kl, near Trombay in Mumbai. This facility commenced operations in
September 2007. Aegis also acquired Konkan Storage Systems (Kochi) with a
liquid storage capacity of 51,000 kl. This capacity is expected to operational by
March 2008.
Apart from these acquisitions, Aegis has bought a land near the Haldia Port to
develop a green-field liquid terminal. This terminal is likely to have a capacity
of 40,000 kl and will be operational by FY11.
It also intends to increase its current capacities in Trombay by building
additional storage facilities. This facility is likely to have a capacity of 56,000 kl
and will be operational by the first quarter of FY10.
Exhibit 4: Liquid logistics capacity to increase (kl)
0
100000
200000
300000
400000
500000
FY06 FY07 FY08E FY09E FY10E FY11E
Trombay I Trombay I I (Sealord) Kochi Trombay III Haldia Mangalore Source: Company, ICICIdirect Research
Liquid handling capacities setto increase 2.7x over FY07-
FY11E
Aegis to adopt a mix of
organic as well as inorganic route to expand high-marginli uid business
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Gas DivisionUnder this division, Aegis imports, stores and distributes (without any
processing) LPG (liquefied petroleum gas) and propane. It operates a 20,000
tonnes fully-refrigerated LPG terminal with two tanks at Trombay in association
with Hindustan Aegis LPG Bottling Company Ltd. (Hindustan Aegis is a
promoter-owned company that is proposed to be merged with Aegis. The
merger proposal is waiting court approval). The facility is capable of handling
500,000 tonnes annually.
The company imports gas from Saudi Arabia, stores them in tanks and then
distributes it to a variety of industrial customers in the western region. Its
clientele include Mahindra & Mahindra, Tata Steel, Grasim and IPCL. Aegis also
offers gas storage and handling to various LPG bulk suppliers on an open-user
terminal basis. In order to grow its LPG business, the company forayed into
auto gas retailing business in FY06.
Entry into high-growth retail businessWith the increasing thrust on usage of gas in automobiles, industrial and
domestic sectors, the prospects for handling, storing and distributing gas also
appear encouraging. The company is increasing focus towards the gas
division, which accounted for 79.7% of its revenues in FY07. Aegis has set up
a retail network of 24 gas stations through which it sells automotive LPG. It
plans to aggressively increase its retail presence to 150 gas stations by the end
FY10, under the Aegis Autogas brand name.
Exhibit 5: Aggressive roll-out of automotive gas stations
0
20
40
60
80
100
120
140
160
FY06 FY07 FY08E FY09E FY10E
Source: Company, ICICIdirect Research
Franchise model to accelerate expansionThe company operates the auto gas business on two models a franchise
based dealer-owned-dealer operated (DODO) model, and a company-owned-
company-operated (COCO) model. Aegis plans to operate 90% of its gas
stations on the DODO model. In the DODO model, the dealer gets a fixed
margin of around 5% (Rs 1.75 per litre) from the company. The dealer has to
invest Rs 40-50 lakh per station. It plans to concentrate in Tier II cities, across 8
states, mainly in southern and western India.
Aegis operates a fully- refrigerated LPG terminalcapable of handling 500,000tonnes annually
A franchise-based modelwould help increase retail
presence without significantincremental investment
Number of retail Autogasstations to increase from 14 inFY07 to 150 by FY10
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Through the predominantly franchise-based model, Aegis can increase its
retail presence without significant incremental investment. The dealers also
benefit from the Aegis brand name and uninterrupted supply of gas.
Low automotive LPG penetration in India offers scope for growthOpportunities in auto gas business are encouraging due to lack of penetration
of LPG as an auto fuel in India. According to Indian Oil, the share of Auto LPG
in the total LPG consumption in India is around 1.7% (180,000 tonne) in FY07,
compared to a world average of 8.3%.
Exhibit 6: Automotive LPG scenario World v/s India 2005 (million tonnes)
World India
Total LPG consumption 215.29 9.98
Auto LPG consumption 17.91 0.08
% of automotive LPG to total LPG consumption 8.30 1.70Source: IOC, ICICIdirect Research
Automotive LPG is fast gaining acceptance as an alternative fuel due to itsenvironmental friendliness and cost efficiency coupled with the governmentsthrust on reducing vehicular pollution.
Exhibit 7: Rising sales of automotive LPG
YearNumber of
LPG stationsSales
(000 tonne) % growthFY04 94 10
FY05 120 35 250FY06 200 95 171FY07 300 180 89
Source: IOC, ICICIdirect Research
With increased availability and awareness of the benefits of using LPG, we
believe demand for LPG as a cleaner fuel will increase and the auto gas
retailing business will form one of the major growth drivers for Aegis.
Exhibit 8: Increasing demand for automotive LPG
8000
9000
10000
11000
12000
13000
FY04 FY05 FY06 FY07
('000tonne)
0
50
100
150
200
250
300
350
400
('000tonne)
Total LPG Demand Auto LPG Demand (RHS)
Source: Ministry of Petroleum & Natural Gas, LPG Consumption IOC, ICICIdirect Research
Aegis to benefit from the
increasing demand for autoLPG in India
Low penetration of auto LPG in India compared to globalconsumption
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Acquisition of Hindustan Aegis to consolidate the gas business
Aegis intends to acquire Hindustan Aegis LPG (HAL), a company owned by thepromoters. Hindustan Aegis owns 20,000-tonne fully refrigerated LPG terminal
at Trombay, which Aegis currently operates. Apart from offering state-of-the-
art facilities like full containment design LPG storage tanks, the terminal also
has gas detectors, automatic shut off systems and remote control valves.
For the acquisition, Aegis will issue 3.6 million new shares of itself to the
shareholders of Hindustan Aegis at a swap ratio of 1:3, and assume a debt of
Rs 30.64 crore. The shareholders and creditors approval for the merger has
been received on October 29, 2007 and the court approval for the same is
expected before March 31, 2008.
According to the management, the tanks can together handle 500,000 tonnesof gas annually. The acquisition is of strategic importance to increase Aegis as
these will help maintain gas storage capacity, which will then be used to
propel the auto gas retailing business.
Merger of Hindustan Aegis, a group company which ownsthe LPG terminal, willconsolidate Aegiss gas
business
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RISK & CONCERNS
Volatility in LPG pricesAegis imports LPG and propane from Saudi Arabia for its trading and auto gas
businesses. LPG prices have a direct co-relation with crude prices. An increase
in the cost of LPG can affect the companys margins. However, the company
believes the long-term sourcing contracts would shield it from volatility in
prices and also provide assured supplies.
Petrol subsidy may reduce differential with LPG pricesPetrol and diesel are subsidised by the government due to political
considerations. Prices have been kept constant for the last six months despite
the global crude prices rising to all-time highs. If the government continues to
shield the domestic fuel prices, the differential between autogas and petrol
may disappear. This could affect the viability of autogas distributors like Aegis.
Exhibit 9: Trend in domestic petrol and International LPG prices
0
10
20
30
40
50
60
Jul-02
Jan-0
3
Jul-03
Jan-0
4
Jul-04
Jan-0
5
Jul-05
Jan-0
6
Jul-06
Jan-0
7
Jul-07
Jan-0
8
(Rsperliter)
Petrol
LPG
Source: Bloomberg, ICICIdirect Research (LPG - Arab Gulf LPG Propane Spot price $/tonneconverted to Rs per liter)
Diversion of domestic LPG to automotive fuelIn India, LPG for domestic purposes is subsidised by the government to make
cooking fuel affordable. However, auto LPG dose not have any subsidy
element and is sold at market prices. Diversion of domestic LPG for
commercial purposes, or for running vehicles, will impact revenues of Autogasplayers like Aegis. LPG is also freely available in most of the cities, which
makes its easy to use as auto fuel. However the use of domestic LPG cylinders
for running cars is not legal. It will take some time before public awareness
increases and growth of autogas dispensing stations will help in reducing the
diversion.
Reducing difference between Petrol and LPG prices mayimpact future viability of retailbusiness
Diversion of subsidiseddomestic cylinders for auto
fuel remains a concern forthe autogas retail business
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FINANCIALS
Exhibit 10: Revenue assumptionsParticulars FY07 FY08E FY09E FY10E
Liquid Division
Revenues (Rs cr) 48.82 64.74 89.28 99.54
Year end Capacity (kl) 162000 237000 288000 344000
Effective Capacity (kl) 162000 212250 288000 316000
Realisation per kl (Rs) 3013 3050 3100 3150
Auto Gas Division
Revenues (Rs cr) 54 182 406
No of operational stations at year end 35 80 150
Volumes per station p.a. (tonne) 600 700 800Realisation per tonne (Rs) 38,000 40,000 40,600Source: ICICIdirect Research
Revenues to grow on back of volume growthRevenues are expected to witness a 43.7% CAGR over FY07-10E on the back
of capacity expansion of liquid division and aggressive roll-out of retail
autogas stations under the gas division. We expect the company to increase
its liquid divisions capacity from 162,000 kl in FY07 to 344,000 kl by FY10E.
Volumes under the gas division are likely to increase from 122,000 tonne in
FY07 to 241,000 tonne by FY10E (25.5% CAGR).
Exhibit 11: Revenues set to surge
0
100
200
300
400
500
600
700
800
FY05 FY06 FY07 FY08E FY09E FY10E
(Rscrore)
Liquid division Gas Storage & trading Autogas
Source: Company, ICICIdirect Research
Revenues to surge on backof volume growth
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Net profits to surgeNet profit is expected to grow at a robust 59.7% CAGR over FY07-10E, while
margins are like to inch up from 8.9% in FY07 to 12.29% by FY10E. The
increase in margin is expected on account of increase in the contribution from
high margin liquid logistics business and foray into the autogas retail business.
Exhibit 12: Trend in net profit and NPM
0
10
20
30
40
50
60
70
80
90
100
FY05 FY06 FY07 FY08E FY09E FY10E
(Rscrore)
0
2
4
6
8
10
12
14
16
18
20
(%
PAT NPM (RHS)
Source: Company, ICICIdirect Research
Net margins to improve on account on increase in high-
margin liquid & retail autogasbusiness
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VALUATIONS
Aegis is one of the major logistics players handling liquid chemicals in India.The company is slated to benefit from the robust growth in the economy, and
the subsequent increase in oil and petroleum consumption. To benefit from
the soaring demand, the company is fast expanding its liquid storage
capacities and its expanding its presence to several ports. It has further
forayed into retailing of automotive LPG through its autogas stations.
Though the stock witnessed a recent run-up, the recent crash has brought
prices to attractive levels. At the current price of Rs 275, the stock trades at
15.03x its FY08E EPS of Rs 18.30 and 9.23x its FY09E EPS of Rs 29.81. On an
EV/EBIDTA basis, the stock is available at 9.92x FY08E earnings and 6.60x
FY09E earnings. We believe that the company is likely benefit from the growth
in Indias energy consumption. We rate the stock an OUTPERFORMER with aprice target of Rs 417, at 14x FY09E earnings.
Exhibit 13: One-year forward rolling P/E Band
0
50
100
150
200
250
300
350
400
450
Apr-0
5
Jun-0
5
Aug-0
5
Oct-05
Dec-0
5
Feb-0
6
Apr-0
6
Jun-0
6
Aug-0
6
Oct-06
Dec-0
6
Feb-0
7
Apr-0
7
Jun-0
7
Aug-0
7
Oct-07
Dec-0
7
SharePrice(Rs)
Source: ICICIdirect Research
22x
18x
14x
10x
Exhibit 14: Peer comparison (Estimates for FY09E)
CompanyPrice(Rs)
Market Cap(Rs cr)
Revenue(Rs cr)
PAT(Rs cr)
EPS(Rs)
P/E(x)
EV /EBITDA
ROE(%)
ROCE(%)
Aegis Logistics 275 448 519 59 29.8 9.2 6.6 30.3 29.0
TCI 120 810 1431 50 6.4 18.8 9.6 13.0 13.1
Gateway Distriparks 110 1016 382 103 8.9 12.4 7.4 14.0 15.2Source: ICICIdirect Research Estimates
Aegis is likely to benefit from the growth in Indiasenergy consumption
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FINANCIAL SUMMARY (Consolidated)
Profit and Loss Account (Rs Crore)
Year to March 31 FY06 FY07 FY08E FY09E FY10E
Net Sales 154.50 240.38 356.20 518.61 713.87
Material cost 84.55 169.20 250.45 358.72 486.93
Manufacturing & Operating
expenses 15.33 19.02 13.70 19.00 27.77
Employee cost 7.29 8.43 10.54 13.70 17.81
Selling & Administrative exp 11.52 13.82 22.33 37.44 55.55
Total expenditure 118.68 210.47 297.01 428.86 588.06
EBITDA 35.82 29.91 59.20 89.75 125.81
Other income 5.02 4.07 0.00 0.00 0.00
Depreciation 3.73 3.83 9.88 12.07 14.21
Interest 3.25 4.44 4.51 4.79 4.06
PBT 33.86 25.71 44.81 72.89 107.54
Taxation 5.63 4.16 8.32 13.44 19.78Extraordinary item 1.97 0.00 0.00 0.00 0.00
PAT 30.20 21.55 36.49 59.44 87.76
OPM (%) 23.18 12.44 16.62 17.31 17.62
NPM (%) 19.55 8.96 10.25 11.46 12.29
Shares O/S (Crore) 1.63 1.63 1.99 1.99 1.99
EPS (Rs) 18.52 13.22 18.30 29.81 44.01
Balance Sheet (Rs Crore)
Year to March 31 FY06 FY07 FY08E FY09E FY10ESources of funds
Equity Share Capital 16.31 16.31 19.94 19.94 19.94
Reserves & Surplus 83.40 100.28 126.81 176.28 254.07
Secured Loans 19.48 61.00 67.70 71.90 61.00
Unsecured Loans 6.97 5.70 0.00 0.00 0.00
Deferred Tax Liability 7.26 7.57 7.57 7.57 7.57
Current Liabilities & Provisions 23.94 54.58 83.47 116.71 156.68
Total Liability 157.35 245.44 305.48 392.39 499.25
Application of Funds
Net Block 66.22 108.87 165.49 205.67 242.76
Capital WIP 0.88 45.72 0.00 0.00 0.00
Investments 16.97 3.04 3.04 3.04 3.04
Cash 14.92 22.36 29.06 28.36 41.08
Trade Receivables 22.83 30.71 56.42 80.39 109.22
Loans & Advances 35.52 34.73 51.46 74.93 103.14
Total Asset 157.35 245.44 305.48 392.39 499.25
59.7% CAGR in net profitover FY07-10E
43.7% CAGR in revenue over
FY07-10E
Increase in net block due to acquisition and capacity
expansion
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Cash Flow Statement (Rs Crore)
Year to March 31 FY06 FY07 FY08E FY09E FY10E
Opening Cash Balance 13.48 14.92 22.36 29.06 28.36Profit after Tax 30.20 21.55 36.49 59.44 87.76
Misc Expenditure w/off -2.42 0.02 0.00 0.00 0.00
Dividend Paid -2.24 -4.66 -4.77 -9.97 -9.97
Depreciation 3.73 3.83 9.88 12.07 14.21
Provision for deferred tax 0.36 0.31 0.00 0.00 0.00
Cash Flow before WC Changes 29.63 21.05 41.60 61.54 92.00
Net Increase in Current Liabilities 0.24 30.64 23.68 33.24 39.97
Net Increase in Current Assets 13.79 7.09 42.44 47.44 57.05
Cash Flow after WC Changes 16.09 44.60 22.85 47.35 74.92
Purchase of Fixed Assets (4.99) (91.34) (20.78) (52.25) (51.30)
Increase / (Decrease) in Loan Funds -4.20 40.25 1.00 4.20 -10.90
Increase / (Decrease) in Equity Capital 0.11 0.00 3.63 0.00 0.00
Net Change in Cash 7.01 (6.49) 6.70 (0.70) 12.72
Closing Cash Balance 20.49 8.43 29.06 28.36 41.08
Ratio Analysis
Year to March 31 FY06 FY07 FY08E FY09E FY10E
EPS (Rs) 18.52 13.22 18.30 29.81 44.01
Book Value (Rs) 5.93 12.63 10.63 8.33 7.16
Enterprise Value (Rs Crore) 459.95 492.76 587.00 591.90 568.29
EV/Sales (x) 2.98 2.05 1.65 1.14 0.80
EV/EBIDTA (x) 12.84 16.47 9.92 6.60 4.52Market Cap to sales (x) 2.90 1.87 1.54 1.06 0.77
Price to Book Value (x) 46.37 21.76 25.88 33.03 38.41
Operating Margin (%) 23.18 12.44 16.62 17.31 17.62
Net Profit Margin (%) 19.55 8.96 10.25 11.46 12.29
RONW (%) 30.29 18.48 24.87 30.29 32.03
ROCE (%) 29.42 16.45 23.00 28.97 33.31
Debt/ Equity (x) 0.27 0.57 0.46 0.37 0.22
Current Ratio 3.06 1.61 1.64 1.57 1.62
Debtors Turnover Ratio 6.77 7.83 6.31 6.45 6.54
Fixed Assets Turnover Ratio 2.33 2.21 2.15 2.52 2.94
Du Pont AnalysisPAT / PBT 0.89 0.84 0.81 0.82 0.82
PBT / EBIT 0.91 0.85 0.91 0.94 0.96
EBIT / Sales 0.24 0.13 0.14 0.15 0.16
Sales / Assets 0.98 0.98 1.17 1.32 1.43
Assets / Equity 1.58 2.11 2.08 2.00 1.82
ROE 30.29 18.48 24.87 30.29 32.03
Equity issued to shareholdersof group company HindustanAegis on account of merger
Stable margins due togrowth in high-margin liquid& retail autogas business
Franchise-based model tohelp increase returns withoutsignificant investment
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8/14/2019 Aegis Logistics
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ICICIdirect endeavours to provide objective opinions and recommendations. ICICIdirect assigns ratings to itsstocks according to their notional target price vs. current market price and then categorises them asOutperformer, Performer, Hold, and Underperformer. The performance horizon is 2 years unless specified andthe notional target price is defined as the analysts' valuation for a stock.
RATING RATIONALE
Outperformer: 20% or more;Performer: Between 10% and20%;Hold: +10% return;Underperformer: -10% or more.
Harendra Kumar Head - Research & Advisory [email protected]
ICICIdirect Research Desk,
ICICI Securities Limited,
Ground floor, Mafatlal House,163, H.T. Parekh Marg,Backbay Reclamation,Churchgate,Mumbai 400 020
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